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Covid-19 Pandemic Supports

Dáil Éireann Debate, Wednesday - 2 December 2020

Wednesday, 2 December 2020

Questions (22)

Aodhán Ó Ríordáin

Question:

22. Deputy Aodhán Ó Ríordáin asked the Tánaiste and Minister for Enterprise, Trade and Employment the value of successful applications under the Covid-19 credit guarantee scheme by month; the average loan value; the largest size of loans; if a list of successful applicants will be published; and if he will make a statement on the matter. [40574/20]

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Written answers

The COVID-19 Credit Guarantee Scheme was launched by Government in September to support those businesses that have been negatively impacted as a result of the outbreak of COVID-19. It is the biggest ever state-backed loan guarantee Scheme in Ireland.

The Scheme was originally scheduled to run until 31 December 2020 in line with the requirements of the Temporary Framework on State Aid. Following the extension of the terms of the Temporary Framework, Government approved on 24 November, the extension of the COVID-19 Credit Guarantee Scheme to run until 30 June 2021.

The Scheme provides an 80% State guarantee on lending for terms between 3 months and five and a half years and offers a range of lending products between €10,000 and €1 million including working capital and term loan facilities. Loans up to €250,000 are unsecured. It is available to SMEs, small Mid-Caps and primary producers.

As a result of the high level of the State guarantee, loans are being provided at interest rates lower than the current market rate for similar loans. This low-cost funding along with other grants which are available provides ready access to funding for businesses during this unprecedented time.

As at 20 November, 2,301 applications were received for a value of €135m and 1,140 loans with a value of €54m were approved and drawn. The table below provides a breakdown of the number and value of loan applications received and the number and value of loans drawn down under the Scheme.

Table of loan applications received and loans drawn

-

Number of loan applications received

Value of loan applications received

Number of loans drawn down

Value of loans drawn down

From 7 Sept - 2 Oct

616

€33.5m

128

€5.8m

From 3 Oct - 30 Oct

983

€58.9m

523

€25.0m

From 31 Oct – 20 Nov

702

€42.5m

489

€23.6m

Total up to 20 Nov

2,301

€134.9m

1,140

€54.4m

The average value of loans drawn is €47,714 and the highest value of loan drawn is €640,000.

Applications to access the COVID-19 Credit Guarantee Scheme are subject to eligibility criteria which are assessed by the credit departments of the individual lenders. Decisions to grant applications for loans are confidential matters between the applicant and the lender. The Department plays no role in the application or decision-making process, which is fully delegated to participating lenders. The Department will therefore not be publishing a list of businesses granted loans by participating lenders.

The COVID-19 Credit Guarantee Scheme is currently available through Allied Irish Banks, Bank of Ireland and Ulster Bank Ireland. In recognition of the need to make this Scheme as widely available as possible an open-call for new on-lenders has been completed and proposals are being reviewed by the Strategic Banking Corporation of Ireland in respect of potential new lenders. I therefore expect to confirm a number of new lenders will be joining the Scheme in the coming weeks which will increase access to the Scheme and make a wider range of products available to businesses.

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